Virgin to buy UTV for $11m

Liberty Global subsidiary Virgin Media has confirmed it is buying Northern Irish broadcaster UTV Ireland from ITV for €10m (US$11m).

The agreement, which was mooted last week, includes a comprehensive 10-year output deal for Ireland for ITV-produced programming. The purchase is expected to be funded through existing liquidity.

David Bouchier, chief digital entertainment officer at Virgin Media, said: “The acquisition of UTV Ireland gives us leadership in commercial broadcasting in Ireland and extends our platform to showcase the best Irish, UK and international programming.

“It also gives us exciting opportunities to buy and make exclusive programmes for our Virgin Media customers in both the Republic of Ireland and the UK.”

UK commercial broadcaster ITV – in which John Malone’s Liberty has a 9.9% share – bought UTV Ireland for US$154m in February. The channel had continually lost money and audience share following its launch in January 2015.

When that deal was announced last October, ITV said it would strengthen the station “with high-quality ITV programming at its core.”

Last year Virgin Media Ireland acquired TV3, Ireland’s official commercial broadcaster, although UTV Ireland also has DTT carriage.

It is not yet known whether plans are in place to merge UTV with TV3 in the Republic, despite local reports suggesting this will be the case.

Pat Kiely, MD of TV3, said: “Virgin Media’s investment in TV3 has already supported the expansion of our studio facilities and increased production of original content.

“The proposed acquisition of UTV Ireland will ensure further investment in the independent Irish television sector as we continue to compete head-on against significant local and international competition.”

Virgin’s UTV acquisition will be subject to competition and regulatory approval from the Competition and Consumer Protection Commission and the Broadcasting Authority of Ireland, as well as a separate media plurality test by the Irish government.

It is expected the transaction will be cleared in the coming months.

UTV head of channel Mary Curtis, who joined in 2014, announced in January that she was leaving her role.